Northern California World Trade Center

Frequently Asked Questions
What Does A World Trade Center Do? What Is The World Trade Organization? How Can Other NCWTC Members Be Of Assistance To My Business? How Can I Find Out More About Job Opportunities With Member Businesses? What Benefits Do I Get Around The World In Other World Trade Centers? Do I Need A License To Export? How Do I Get An Export License? I've Never Exported Before. What Is A Good Resource For "Getting Started"? Where Can I Find General Market Information On A Particular Country? How Can I Find A Good Mailing List Of Prospects In Another Country? What Is A Free Trade Agreement? What Is A NAFTA Statement? When Do I Need A Certificate Of Origin? What Is A Letter Of Credit? What Is A Standby Letter Of Credit? I Am Traveling To A Foreign Country For Business In The Near Future. Do I Need A Visa To Travel? When Traveling To A Foreign Country, Is It Better To Take Cash/Travelers Checks Or Use My Credit Card? What Is The Best Way To Pay An Invoice From A Foreign Country? What Are Duties And Taxes? Why Are They Important? Why Do I Have To Fill Out Extra Paperwork On My International Shipment? What Is A SED?
Q: What Does A World Trade Center Do?
	A: A World Trade Center brings together businesses and government agencies involved in foreign trade. Each World Trade Center provides up-to-date information about their respective regions, including local products and services, market conditions, government regulations and business culture. They also perform market research tailored to specific needs.
Q: What Is The World Trade Organization?
	A: The World Trade Organization came into being in 1995. One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War. WTO's overriding objective is to help trade flow smoothly, freely, fairly and predictably through its involvement in: Administering trade agreements Acting as a forum for trade negotiations Settling trade disputes Reviewing national trade policies Assisting developing countries in trade policy issues, through technical assistance and training programs Cooperating with other international organizations For more information regarding the WTO, visit their website at http://www.wto.org
Q: How Can Other NCWTC Members Be Of Assistance To My Business?
	A: NCWTC is comprised of many international businesses offering products, services and expertise that may be helpful to and your business. We will connect you to them and them to you as requests and referrals arise.
Q: How Can I Find Out More About Job Opportunities With Member Businesses?
	A: Being an NCWTC member and being involved with our activities will introduce you to many companies and small businesses. Many events and activities we host provide good networking opportunities to meet new businesses and members who often are in search of skilled international staff. - TOP -
Q: What Benefits Do I Get Around The World In Other World Trade Centers?
	A: When traveling internationally or in the U.S. enjoy the services and facilities of our sister WTC's at member rates. For a complete list of World Trade Centers, visit the WTCA website.
Q: Do I Need A License To Export?
	A: Many exporters do not realize that they automatically possess the license to export for most countries of the world. The majority do not need to apply for a particular license since their product is automatically issued a “general license” by the government. Should a product not fall under the general licensing category, then a “validated license” must be obtained by the government. Products that require a license are usually those that are of a strategic nature, in short supply or are highly technical goods. Products destined for a country on which the U.S. has placed an embargo or has foreign policy concerns are also subject to a license. There are three main questions that determine whether your product requires an export license: What is the destination of the export? Check the list of countries in the Export Administration Regulations, www.bxa.doc.gov. What is being exported? Check the commodity control list. Are there any special restrictions?
Q: How Do I Get An Export License?
	A: Through the U.S. Department of Commerce, the Bureau of Industry and Security provides information on the application process for an export license at http://www.bis.doc.gov/licensing/Applying4Lic.htm
Q: I've Never Exported Before. What Is A Good Resource For "Getting Started"?
	A: There are many good resources for "getting started". Visit our Trade Resources page designed for Exporters for information and websites tailored to the world of exporting.
Q: Where Can I Find General Market Information On A Particular Country?
	A: There are many books and electronic resources available, including the Country Commercial Guides from the U.S. Dept. of Commerce. Visit our Country Profiles page for a list of the top 25 California export partners and more links to helpful websites. - TOP -
Q: How Can I Find A Good Mailing List Of Prospects In Another Country?
	A: There are numerous resources available to identify lists of prospective customers, distributors, sales representatives, etc. A few of the resources that we would recommend would be www.kompass.com, www.ameinfo.com and the contact lists at the back of a country commercial guide available from the U.S. Dept. of Commerce. Kompass is a worldwide database with close to 1.5 million companies and 23 million product and service references. Some information on this web site can be accessed free of charge. Ameinfo is a useful Middle East business resource database with more than 200,000 companies from 14 Middle East countries.
Q: What Is A Free Trade Agreement?
	A: A free trade agreement is an arrangement between two or more nations which establishes unimpeded exchange and flow of goods and services between trading partners regardless of national borders.
Q: What Is A NAFTA Statement?
	A: Generally speaking, commercial goods exported from the U.S. to Canada or Mexico that are claiming reduced NAFTA duties are required to have a formal certificate of origin available at the time of entry into either country. If the exported shipment is under $1,000, no formal certificate of origin is required; however, the invoice or document accompanying the shipment needs to contain a signed statement. Non-Commercial importations do not require the Formal Certificate of Origin or written/signed statement, regardless of value.
Q: When Do I Need A Certificate Of Origin?
	A: Some destinations require a Certificate of Origin (CO) for certain commodities. The purpose of the CO is to authenticate the country of origin of the merchandise being shipped. The CO may be required because of established Treaty arrangements, varying duty rates, and preferential duty treatment dependent on the shipment’s origin. The commodity being exported and its destination determine if the CO is required. Some nations restrict imports from certain countries and many countries limit the quantity of goods that are allowed to be imported, or give preference to goods manufactured in the U.S. - TOP -
Q: What Is A Letter Of Credit?
	A: A Letter of Credit is an instrument issued by a bank at the request of its customer (the buyer) that assures payment to the beneficiary (the seller) provided that the seller meets the terms and conditions as stated in the letter of credit. A letter of credit usually requires specified documents relating to the shipment of goods or providing of services.
Q: What Is A Standby Letter Of Credit?
	A: A Standby Letter of Credit however is an instrument requiring a bank to assure payment to a third party beneficiary in the event of nonpayment or nonperformance by its customer. It has a wide range of uses including 1) guarantee of payment for goods or services 2) surety 3) escrow 4) bid/performance bond and 5) credit enhancement.
Q: I am Traveling To A Foreign Country For Business In The Near Future. Do I Need A Visa To Travel?
	A: There are a number of resources where you can find this information. One location is in the Exporters Encyclopedia – Dun & Bradstreet (WTC Library). Another would be on the Foreign Embassy web sites. Many of the embassies and consulates provide visa specific information directly on their web sites. The travel agency who booked your trip should advise you of any pre-trip requirements.
Q: When Traveling To A Foreign Country, Is It Better To Take Cash/Travelers Checks Or Use My Credit Card?
	A: A credit card is recommended because today, virtually all credit card companies provide competitive rates on your foreign denominated purchases (FYI, the exchange rate used on your credit card charges is set by the credit card company, not the issuing bank). You should also take some cash, but just enough to get through initial tipping and transportation. - TOP -
Q: What Is The Best Way To Pay An Invoice From A Foreign Country?
	A: By an International Bank Draft or Wire Transfer: An International Bank Draft is drawn on a bank in the seller's country. The draft would be issued to you and you would mail it to the Payee. The Payee could then deposit it at his bank; A wire transfer would electronically remit funds to the Beneficiary's bank for credit to his account.
Q: What Are Duties And Taxes? Why Are They Important?
	A: Duties and taxes are fees charged by the importing country's government most often based on the monetary value of the commodities shipped. Customs agencies collect duties and taxes to generate revenue and protect the local economy.
Q: Why Do I Have To Fill Out Extra Paperwork On My International Shipment?
	A: Customs agencies in foreign countries require all shipments that have a monetary value to include a pro forma or commercial invoice. It informs them who the importer is and what is being imported. Customs uses this paperwork to calculate the duties and taxes due to the government. It is the shipper's responsibility to complete all export documentation completely and correctly, and submit the documentation with the shipment.
Q: What Is A SED?
	A: A SED is a Shippers Export Declaration. It is a standard U.S. government form used to keep statistics on export shipments valued over USD 2,500.00. The form is also required when any commodity to be shipped requires an export license, regardless of the value. The SED also has to be on yellow or buff paper. If the commodity has a license exemption, a Destination Control Statement should be placed on both the SED and the invoice. Some shippers file electronically with the U.S. government, if so, they are given an AES Transaction number. The shipper would need to place that number in the SED portion of the Worldwide Services Waybill. If a shipper has questions about electronic filing, they will need to contact their local customs office. Two copies of the SED are required when the value of any single Schedule B commodity is over USD 2,500.00. - TOP -